The Central Bank of Nigeria (CBN) has reaffirmed its commitment to enforcing a controversial cybercrime levy on all electronic transactions for the 2024-2025 fiscal year. The levy, which has been set at 0.005 percent, is outlined in the CBN’s recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines.
The cybercrime levy, which is part of the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to strengthen Nigeria’s cyber security infrastructure. Despite sparking debate among Nigerians and a purported suspension, the CBN has confirmed that banks and other financial institutions will be required to deduct the levy from all electronic transactions.
The current rate of 0.005 percent represents a significant reduction from the 0.5 percent initially announced in May 2024. The revenue generated from this levy will be directed towards a cybersecurity fund, which is intended to support measures that protect Nigeria’s banking system from the growing threat of cyberattacks.
In the policy document, the CBN stated, “The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”
The confirmation of the levy’s enforcement comes after a notice in May, in which the CBN mandated all banks in Nigeria to collect and remit a 0.5 percent cyber security levy to the office of the National Security Adviser. The announcement sparked outrage among the public, leading to President Bola Ahmed Tinubu ordering its suspension.
The CBN’s decision to proceed with the levy, albeit at a reduced rate, underscores the importance placed on bolstering Nigeria’s cyber security infrastructure. As the country continues to embrace digital transactions and online banking, protecting these systems from potential threats has become a top priority.
The banking sector and the general public are now awaiting further details on the implementation of the cybercrime levy and its potential impact on electronic transactions. The CBN is expected to provide more guidance on the collection and remittance process in the coming weeks.